Why these 10 stocks have CRASHED in 2017

Earlier today I reported on 10 of the top performing companies so far in 2017, with all of them up more than 60% compared to the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rise of a 1.8%.

At the opposite end of the spectrum, these ten stocks have lost more than 30% of their value in just over two months. Here’s a closer look.

Company Share Price Market Cap ($m) Price change
Martin Aircraft Company Ltd (ASX: MJP) $0.15 $59.5 -51%
Ten Network Holdings Limited (ASX: TEN) $0.54 $196.3 -43%
iSentia Group Ltd (ASX: ISD) $1.63 $326.0 -42%
Compumedics Limited (ASX: CMP) $0.51 $90.4 -41%
AJ Lucas Group Limited (ASX: AJL) $0.23 $89.8 -45%
Sundance Energy Australia Ltd (ASX: SEA) $0.14 $168.7 -39%
Bellamy’s Australia Ltd (ASX: BAL) $4.10 $396.4 -38%
Innate Immunotherapeutics Ltd (ASX: IIL) $0.62 $138.2 -34%
Orocobre Limited (ASX: ORE) $2.82 $593.7 -36%
CSG Limited (ASX: CSV) $0.49 $156.7 -33%

Source: Google Finance, S&P Global Markets Intelligence

We’ve covered the large falls in the share prices of iSentia, Bellamy’s, CSG Limited and Orocobre recently, so this article will take a closer look at the rest.

Martin Aircraft Company – the personal jetpack developer – has extraordinary potential to roll out jetpacks to anyone who can afford one. The only problem is that it has yet to record much in the way of revenue – despite the hype. For shareholders, that’s a major issue and the company remains highly speculative.

Broadcaster Ten Network faces structural issues in free-to-air broadcasting, and for some years I’ve said that Australia’s advertising market can’t support three broadcasters. Advertising is moving online, and the arrival of subscription video on demand (SVOD) services like Netflix and Stan are killing the free-to-air model. Ten’s rivals appear much more likely to survive.

Compumedics develops and distributes medical devices used for monitoring sleep and other disorders, but reported an 88% fall in reported net profit for the six months to end of December 2017. The company still expects to report a net profit of between $2.5 and $5.5 million for the full year, but that was lower than the company had forecast in August 2016. It seems investors were expecting a better result.

Mining and energy services company AJ Lucas continues to disappoint shareholders with yet another loss as revenues crashed 9% for the first half of the 2017 financial year (FY17). This time it was a whopping $25 million loss on revenues of just $51 million. Making matters worse is that AJ Lucas says it needs to raise a significant amount of capital by early April, forcing shareholders to dip into their pockets again.

Sundance Energy disappointed investors with its fourth-quarter update and 2017 guidance at the beginning of February as we reported here. It seems oil and gas companies aren’t benefitting much, despite Brent crude oil prices trading around US$55 a barrel since the start of this year.

Finally, Innate Immunotherapeutics has seen some wild trading in its share price, soaring as high as $1.83 on January 27, only to close at 78 cents the day after as we noted here. It’s anyone’s guess where the share price could be by the end of this year.

Foolish takeaway

Investors don’t much like being disappointed by their companies, and bad news is usually reflected in a falling share price. If the company is highly speculative or unprofitable, the plunges can be much more drastic.

Top 3 ASX Blue Chips To Buy In 2017 that could be ideas than the stocks above

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Mike King owns shares of Bellamy's Australia. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.